Midwest Energy has begun commercial production at its 1.2 GWh Battery Energy Storage System manufacturing facility in Bengaluru and expects the plant to generate around Rs10 bn in annual revenue at full capacity, the chief executive said. The company invested Rs one bn in the plant, excluding land, making it its largest clean energy manufacturing bet as India scales battery storage. The facility features integrated cell-to-container manufacturing for modules, trays, racks and containerised systems for commercial, industrial and utility use.

The plant has an annual capacity of 1.2 GWh and can be scaled to 2 GWh through automation, with a target of 6 GWh over the next three years and land secured for expansion. Midwest Energy will move its research and development operations from Hyderabad and set up a 30,000 sq. ft. R and D centre at the Bengaluru site. The company currently employs about 50 to 55 people across manufacturing and R and D and plans to expand the workforce to 150 within a year.

The group is also completing a 500 tonne (t) rare earth permanent magnet plant that is due to start operations by September and aims to scale to 5,000 t over time. It plans to apply under the government Production Linked Incentive scheme for rare earth magnets before the July 29 deadline and is pursuing mine-to-magnet integration with its own mines to secure supply. Around forty per cent of battery system components are sourced domestically while some certified components remain imported.

The company expects to localise most imported components within a year by building a domestic supplier ecosystem and noted some parts are sourced from China because local suppliers do not yet meet UL certification. The Bengaluru plant is designed to produce battery energy storage systems from 3 kWh to 6 MWh and the company plans to supply customised solutions to domestic and international markets. Executives said the industry needs government incentives similar to other strategic sectors and that large groups have already engaged with the government on support.